diff --git a/indra/newview/llinventorylistitem.cpp b/indra/newview/llinventorylistitem.cpp
index e4a7a158a3a62df06adedb26bf3c30d3a20c7ed1..2546390fcbf1f21386dfad5443d27d40be09ea33 100644
--- a/indra/newview/llinventorylistitem.cpp
+++ b/indra/newview/llinventorylistitem.cpp
@@ -96,9 +96,12 @@ void LLPanelInventoryListItemBase::draw()
 
 	if (mSeparatorVisible && mSeparatorImage)
 	{
-		// stretch along bottom of listitem, using image height
+		// place under bottom of listitem, using image height
+		// item_pad in list using the item should be >= image height
+		// to avoid cropping of top of the next item.
 		LLRect separator_rect = getLocalRect();
-		separator_rect.mTop = mSeparatorImage->getHeight();
+		separator_rect.mTop = separator_rect.mBottom;
+		separator_rect.mBottom -= mSeparatorImage->getHeight();
 		mSeparatorImage->draw(separator_rect);
 	}